There are many situations when a second mortgage might be the right solution in your sitaution. please look at the following situation to see the suitability.
Renovating to create a rental unit:
With the average rental rate in Canada just under or over $2,000, we’ve seen a ton of clients taking out 2nd mortgages to renovate and add a rental unit to their property. This allows them to be cashflow positive almost immediately post renovation, increases their verifiable income & can increase the value of their home.
Investment Properties:
When rates were low, investors were happy to refinance their 1st mortgages to access the equity needed to buy a property. Now, many have locked in a low rate and it is more economical for them to take out a private 2nd to preserve their low rates
Debt Consolidation:
Many people have been using their credit cards to help keep pace with inflation. We’ve helped countless people clean up their credit and consolidate their debt to increase monthly cashflow.
Financing businesses:
Lots of self-employed individuals need to inject funds into their business. This is a far more economic way of managing business cashflow issues than an unsecured loan or business loan.
Life Events:
Sending a kid to college, cleaning up CRA debts or tax arrears and more. This is a great time to check in with your clients to make sure they’re financially healthy with everything going on in the market
With this rising rate envoirenment and unpredictable markets, sometimes a second(2nd) mortgage can help you in many situations even though the rates and fees is higher. So always have a unbiased and honest free consultation to see if this product is suitable for you or not.
You can always book a free no obligation consultation with me @rajiv@simplifymortgage.ca or call or text me @ 647.291.7116
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